Published: 08/10/2020 By Sarah Schendel
In a recent statement, Airbnb has announced it will now be sharing data with HM Revenue and Customs regarding the income received by those who use/have used, this platform as a means to generate extra income, through property rental.By way of a brief background, Airbnb hosting has become extremely popular in recent years, with an increasing number of landlords using Airbnb as an easy platform to let their property, whether it’s their main home, or a buy to let property.
Having seen a surge in popularity, renting a property on Airbnb has been seen as a lucrative way to potentially enhance rental income opportunities, however HMRC believe many landlords may not be fully aware of their obligations and responsibilities to correctly disclose this source of income, to the appropriate tax authorities.
With Airbnb now making this information available to HMRC, we suspect that in turn HMRC shall use this data to launch a new wave of tax enquiries, resulting in many homeowners and landlords, who use Airbnb, becoming subject to a formal tax enquiry. This may result in an individual facing retrospective tax liabilities, and penalties for non-disclosure.
Here at Turpin Barker Armstrong we are happy to help, and should you wish to discuss the above, or perhaps you may know someone who may require assistance with their own tax affairs in this respect, please do not hesitate to contact us, or pass on our details.
It’s always advisable to be proactive with tax matters instead of risking tax penalties further down the line, and we have a dedicated team of experts who are happy to offer advice and guidance to help you.
If any of the above information applies to you, or if you know of any family or friends who could benefit from our expert tax advice, we can be contacted on the usual office number, 0208 661 7878, or via email, bsg@turpinba.co.uk
We can arrange to see you in one of our socially distanced meeting rooms at our office, speak on the telephone or even via a virtual meeting such as a zoom or skype. We are here to help and offer a free initial consultation at your convenience.